REPORT OF THE BOARD OF DIRECTORS
1
REPORT OF THE BOARD OF DIRECTORS
Net interest The net interest and credit commission income was total of MNOK 113, compared with MNOK 95 for the first quarter last year. As a percentage of average assets it has increased from 1,55 % Q1 2013 to 1,75 in Q1 2014. The improvement on MNOK 18 is caused by falling borrowing costs and a margin increase on the running lending portfolio, both for corporate and retail customers.
Helgeland Sparebank, Accounts 1th quarter, 2014 General information Helgeland Sparebank is a traditional bank- and finance institution. The bank has 15 offices in 13 municipalities in the Norwegian region of Helgeland. It is the 12th largest savings bank in Norway.
Net commission earnings Net commission income increased in NOK and as a percentage of average total assets and was 19 (17) million or 0.30 (0.28)%. The increase is primarily in insurance sales and payments.
The HSB group includes Helgeland Sparebank and the consolidated subsidiaries Helgeland Boligkreditt AS, ANS Bankbygg Mo, AS Sparebankbygg, Helgeland Sparebank’s Eiendomsselskap AS and Helgeland Utviklingsselskap AS. The bank owns 48% of Helgeland Invest AS, 43% of Storgata 73 AS and 34% of Eiendomsmegleren Helgeland AS. The results from the associated companies are incorporated into the HSB group’s corporative results corresponding to the bank’s share of ownership.
Net value change and profit/loss on financial instruments Net value change on financial instruments is posted as income with MNOK 6. Compared with 31.03.13 the income from financial investments has increased by MNOK 3. The increase is related to shareholdings in terms of gains in 2014, while it was recorded losses in 2013. Changes in value that cannot be taken through the profit is recognized under other comprehensive income, cf. applicable accounting principles.
The accounts are conducted in line with IFRS, hereunder IAS 34 with regards to interim reporting. All numerical quantities are affiliated to the HSB group. The periodical accounts have not been audited. Numerical quantities in brackets apply to the corresponding period last year.
Operations costs Total operating expenses increased by 3 million. Operating expenses as a percentage of average total assets are unchanged from the same period last year 0.96 (0.96)%, while costs measured against revenue was 44.5 (50.9)%.
Main features 31.03.14 (HSB group) Helgeland Sparebank Group has a profit before tax of 66 million. This is an improvement of NOK 15 million compared with the same period last year. Basic operation is strengthened by increased net interest income with 18 million.
The workforce of the Group and the Bank is 177 FTEs, unchanged from 2011. Sickness absence is at a low level, ending total of 4.3 (4.3)% in the quarter.
Return on equity after tax was 9.9 (8.4)%. The Group manages the objectives of providing return on equity of 10%. Earnings per equity certificate were NOK 1.90 (1.50).
Write-downs posted as expenses on commitments Write-downs on lending are posted with MNOK 11 (6). Of this, write-downs on groups of lending are MNOK 1,5 (0). In total, write-downs posted as expenses are still on a relatively low level and constitute 0.17 (0.10) % of gross lending. Net losses are slightly higher than the corresponding period last year, but on par with Q4 2013.
Sale of stake in NETS will impact earnings in Q2 2014 of 16.8 million. This change has been incorporated in other comprehensive income. Official rating from Moody's was awarded in Q1 2014. This will strengthen the bank's position in the capital market. Helgeland Sparebank got rating Baa2/P-2/Stabile Outlook, while Helgeland BoligKreditt its covered bond program received an Aaa rating.
Extended result Positive values increase on shares are recognized in equity and comprehensive income by 13 million. This is mainly due to increased valuation of the bank's stake in the Nets Holding AS. Settlement selling stake is expected in Q2 2014.
Key figures 31.03.14: (Comparison per 31.03.13)
The Equity Certificate (EC) - HELG The EC capital constitutes MNOK 935 and is distributed over 2,200 owners. Annotation 19 shows an overview of the 20 largest EC owners.
Net interest 1.75 (1.55) % Costs in % of income 44.5 (50.9) % Write-downs on lending 0.17 (0.10) % 3-month lending growth 0.2 (1.3) % 3-month deposit growth 0.2 (2.2) % CET1 capital ratio 12.2 (11.4) % Total capital ratio 15.9 (13.1) %
Sparebankstiftelsen Helgeland is the largest shareholder. They sold out 2.5 million ECC in 2013 and a further 1.0 million ECC in Q1 2014. Foundation now owns a total of 46.0% of the equity certificates in HELG. 1
REPORT OF THE BOARD OF DIRECTORS
There have been positive developments and greater turnover of the equity certificates. The price per 31.03.14 was NOK 49.10, an increase of NOK 1.90 per equity certificate from 31.12.13.
transfer to the bank's residential mortgage has high priority. Rating, The importance of having an official rating has become increasingly important as new regulatory requirements for liquidity and equity are implemented. In light of this, it was important for the bank to put in place a rating from a recognized rating agency and bank got in the first quarter of 2014 in place rating of the parent bank and covered bond program in the mortgage company. This will help to ensure the Bank and the Group competitive conditions in the money market and strengthen its position as an autonomous and independent bank.
Balance development 31.03.14 The total assets have increased by MNOK 1,052 or 4.3 (7.5) % in the last 12 months, and now constitute NOK 25.8bn. Commitments Gross lending at the end of the quarter totaled MNOK 20,757. In the past 12 months, lending increased by MNOK 661, or 3.3 (9.0)%. 83.7 (83.3)% of the Group's loans are lent to customers in Helgeland. Growth in the retail market over the past 12 months is slightly lower than the corresponding period last year and was 6.1 (11.7)%, growth remains at the national level. MNOK 13,602 or 65.5 (63.8)% is loaned to private customers. 20.6% of gross loans, or MNOK 4.278 is transferred to Helgeland Boligkreditt.
Risk- and capital management The Group's overall risk is managed through mandates, objectives and limits approved by the Board. Total capital emerges in the Group's ICAAP. Liquidity and funding The Board has adopted a liquidity management strategy that specifies the purpose, management objectives and risk tolerance for liquidity risk management. The Bank's liquidity situation is assessed as satisfactory, and, long-term funding is well above target. The group's cash reserves (cash, bank deposits and fixed income securities) account for 4.0 (3.9) billion or 15.6 (16.0)% of the Group's total assets. The total duration of the portfolio is 2.0 (2.0) years. Long-term financing in% of illiquid assets (liquidity indicator 1) was 110.1 (107.0)%. Last known targets from reference banks were 31.12.13 by 106.8%
New and stricter capital requirements have increased the need for adaptation and capital efficient measures. In line with the bank’s goal, the bank controls lower growth in the business market and 12-month growth in corporate lending was -1.6 (4.7) %. Deposits from customers The last 12 months have deposits increased by 1.647 million, or 14.4 (8.0)%. The Group has a stable local deposit base, of which 91.9 (91.7)% deposits from customers at Helgeland. The overall deposit growth is maintained as a result of a number of initiatives with a strong focus on deposits and long-term savings. Deposit ratio is significantly improved and was 63.1 (57.0)% in the group and 80.7 (76.2)% in the parent bank. Deposits under 2 million equals 7.7 billion, or 58.5% of total deposits volume
Credit risk The Group’s strategy for credit risk is derived from the overall strategy and provides guidelines for the allocation of lending between retail and corporate market exposure in industries (concentration risk) and geographical constraints.
The growth in deposits from households was 6.3 (9.4)%. Of the total deposits of 13.1 billion, is 7.9 billion or 60.8 (65.5)% deposits from retail customers.
The development in the bank’s credit risk is monitored closely. Corporate customers are followed up closely on the individual level in addition to the monitoring of risk development based on the bank’s scenario models per region and areas of responsibility, as well as significant industries. The bank is monitoring the development in relation to the determined steering goals for the portfolio.
Deposit growth is greatest in the business market with 29.7 (5.5)%. This growth is particularly high as a result of a new great local business customer end of Q3 2013. Loans from the capital market In addition to customer deposits, it is the group's main source of funding. The deposits ratio is well above the target of 60%.
Impairments losses were at 31.03.14 expensed with MNOK 11 (6), of which impairments on loans MNOK 1.5 (0). Net losses are slightly higher than the corresponding period last year, but still at a relatively low level.
The group has a good and long term financing with amply diversified funding sources. The last part of the swap agreement through Norges Bank was repaid during the quarter and is at the forefront replaced through other funding sources. At the end of the quarter share funding over one year 81.7 (78.6)%. Helgeland Boligkreditt is an important source of funding and provision of mortgages approved for
Total net non-performing and doubtful loans is relatively stable and was MNOK 118 (120), equivalent to 0.57 (0.60 ) % of gross loans.
2
REPORT OF THE BOARD OF DIRECTORS
Solidity The HSB group has strengthened its CET1 capital ratio to 12.2 (11.4) %, which is well above the current regulative minimum requirement of 9%, as well as the new minimum requirement of 10% from July 1 2014 and 11% from July 1 2015. The core capital ratio was 13.8 (13.0) %. The total capital was 15.9 (13.1) % per 31.03.14
interest rates on home loans at 0.15 to 0.25 % , this will be covered by reducing deposit rates RM and CM up to 0.40 % . Official rating will strengthen its position in the capital market and lead to lower funding costs The level of commission income is expected to be maintained with continued pressure on insurance sales
The bank’s Board of Directors has determined a capital plan for 2013 – 2017, where satisfaction of the new capital requirements in Norway caused by the CRD IV is central. The Board of Directors has determined new capital goals, where the aim is a CET1 capital ratio (HSB group) at least at 12.5% and a total capital ratio up toward 18% (given a counter cyclical capital buffer at 2.5%).
There is an increased focus on operational efficiency and cost control eg due to increased payroll taxes. Losses expected at the level of the industry. Good deposit ratio as a managerial focus continued in 2014. Loaned side controls the bank for a loan growth of approx. 5-6 %.
The group plans to continue to strengthen CET1 by building capital through operations. Furthermore, the total capital ratio could be further enhanced by the use of subordinated debt and hybrid capital in the period up to 2017. In line with the Bank's capital plan, the group recorded reduced lending growth and strengthening core operations.
The Bank expects continued stability and steady growth in the region. Nevertheless, it is necessary to pay attention to a potential slowdown in the Norwegian economy, regional development, and a possible risk of increased losses. Growth is primarily ensured through major bn. NOK infrastructure investments, among them being: Modernization and expansion organized by HelgelandsKraft and Statkraft, field development of Aasta Hansteen by Statoil, development of Brønnøysundregistrene and the National Library by the government, upgrading of E6 throughout the region by the government, and the construction of a major airport outside Mo i Rana under review by the government.
The prospects ahead Targeted work to the bank's strategy and capital plan will continue in 2014 . Priority is profitability and solvency. he Bank expects that the core operations despite a slight decrease in net interest income as a result of increased competition and relief BM involvement. To meet the competition , it approved a reduction in
Mo i Rana, 29 April 2014
Thore Michalsen Chairman of the Board
Ove Brattbakk Deputy Chairman of the Board
Gislaug Øygarden
Monica Skjellstad
Stein Andre Herigstad-Olsen
May Heimdal Employee Representative
Jan Erik Furunes Chief Executive Officer
3
CONTENTS PROFIT AND LOSS ACCOUNT (amounts in NOK million).......................................................................................................... 5 BALANCE SHEET (amounts in NOK million) .............................................................................................................................. 6 CHANGE IN EQUITY CAPITAL .................................................................................................................................................. 7 CASH FLOW STATEMENT ........................................................................................................................................................ 8 NOTE 1. ACCOUNTING PRINCIPLES ....................................................................................................................................... 8 NOTE 2. SEGMENT ................................................................................................................................................................... 9 NOTE 3. SPECIFICATION OF NET CHANGE IN VALUE OF FINANCIAL INSTRUMENTS ...................................................... 10 NOTE 4. SPECIFICATION OF TOTAL OPERATING COSTS ................................................................................................... 10 NOTE 5. LOSSES ON LOANS GUARANTEES, ETC................................................................................................................ 10 NOTE 6. PROFIT PER PRIMARY CERTIFICATE ..................................................................................................................... 10 NOTE 7. GEOGRAPHICAL EXPOSURE .................................................................................................................................. 11 NOTE 8. COMMITMENT AND LOSSES SPLIT BY SECTOR/INDUSTRY ................................................................................ 11 NOTE 9. BAD AND DOUBTFUL LOANS (incl. guarantees) ...................................................................................................... 12 NOTE 10. INDIVIDUAL AND COLLECTIVE WRITE DOWNS OF LOANS AND GUARANTEES ............................................... 12 NOTE 11. CONTINGENT OFF BALANCE SHEET COMMITMENTS ........................................................................................ 12 NOTE 12. SUBSIDIARIES AND ASSOCIATED COMPANIES .................................................................................................. 13 NOTE 13. OPERATING FUNDS ............................................................................................................................................... 13 NOTE 14. DISCLOSURES OF RELATED PARTIES ................................................................................................................. 14 NOTE 15. REAL VALUE OF FINANCIAL INSTRUMENTS ........................................................................................................ 14 NOTE 16. FINANCIAL DERIVATIVES ...................................................................................................................................... 16 NOTE 17. GEOGRAPHICAL EXPOSURE DEPOSITS FROM AND LIABILITIES TO CUSTOMERS ........................................ 17 NOTE 18.DEPOSITS FROM CUSTOMERS SPLIT BY SECTOR/INDUSTRY .......................................................................... 17 NOTE 19. EQUITY CERTIFICATE CAPITAL HELG .................................................................................................................. 17 NOTE 20. CAPITAL ADEQUACY.............................................................................................................................................. 18 PROFIT AND LOSS ACCOUNT ITEMS AS A PERCENTAGE OF AVERAGE ASSETS ........................................................... 19 PROFIT & LOSS ACCOUNT AND BALANCE SHEET DEVELOPMENT ................................................................................... 20 OTHER KEY FIGURES............................................................................................................................................................. 21
4
PROFIT AND LOSS PROFIT AND LOSS ACCOUNT (amounts in NOK million) Parent bank
Group
31. 12. 13 31. 03. 13 31. 03. 14
31. 03. 14 31. 03. 13 31. 12. 13
911
214
230 Interest receivable and similar income 139 Interest payable and similar costs
554
137
357
77
91 Net int eres t - and c redit c ommis s ion inc ome
87
19
22 Commissions receivable and income from banking services
10
2
77
17
37
1
15
3
229
58
28
6
229
34
54
9
175
272
252
1072
159
157
633
113
95
439
22
19
87
2
2
10
19
17
77
5 Gains/losses on financial assets available for sale (note 3)
6
3
14
3 Other operating income
1
1
7
60 Operating costs (note 4)
62
59
239
2 Commissions payable and costs relating to banking services 19 Net c ommis s ion inc ome
11 Losses on loans, guarantees etc. (note 5)
11
6
32
47 Res ult bef ore t ax
66
51
266
13 Tax payable on ordinary result
18
14
73
25
34 Res ult f rom ordinary operat ions af t er t ax
48
37
193
7,0
1,0
1,4 Yield per equity capital certificate (note 6)
1,9
1,5
7,8
7,0
1,0
1,4 Diluted result per ECC in Norwegian currency (note 6)
1,9
1,5
7,8
48
37
193
Ex t ended Inc ome St at ement 175
25
48 Res ult f rom ordinary operat ions af t er t ax Itemes that are not subsequently reversed through profit or loss:
4
-24
-1
7
3
-17
0 Estimate variances, pensions will not be reversed over the income statement 0 later
-24
4
0 Tax on extended profit
0
7
-1
0 Net extended profit or loss items
0
-17
3
14
12
46
Itemes that are not subsequently reversed through profit or loss: 46
5
12
14 Net change in fair value available-for-sale fin. assets
0
-1
-1 Tax on extended profit
-1
-1
0
46
11
13 Net extended profit or loss items
13
11
46
224
19
61 Tot al res ult f or t he period
61
31
242
BALANCE SHEET (amounts in NOK million) Parent bank
Group
31. 12. 13 31. 03. 13 31. 03. 14
31. 03. 14 31. 03. 13 31. 12. 13 ASSETS
98
85
1.273
672
15.863
15.317
103 Cash and claims on central banks 1.113 Loans to and claims on credit institutions 16.431 Loans to and claims on customers (note 7,8,9,10)
213
185
4.851
4.696
221 Financial derivatives (note 16)
164
164
163 Investments in associated companies (note 12)
346
347
346 Investments in subsidiaries (note 12)
53
66
53 Deferred tax benefit
71
76
68 Fixed assets (note13)
53
33
13 Other assets
22. 985
21. 641
647
828
13.248
11.747
6.361
6.811
41
41
235
238
519
219
21. 051
19. 884
1.031
1.031
903
701
0
25
1. 934
1. 757
103
85
99
601
303
607
20.640
20.004
20.597
221
185
213
3.829
3.721
4.032
155
157
155
0
0
0
53
69
53
173
182
176
14
31
53
25. 789
24. 737
25. 985
0
828
647
13.350 Deposits from customers and liabilities to customers (note 17,18) 13.100
4.333 Certificates, bonds and shares available for sale
22. 844 Tot al as s et s LIABILITIES AND EQUITY CAPITAL
1. 934
1. 757
22. 985
21. 641
0 Liabilities to credit institutions
11.453
12.989
9.873
10.146
9.553
41
41
41
231 Other liabilities
242
241
248
519 Fundbonds and subordinated loan capital
519
219
519
23. 775
22. 928
23. 997
1.031
1.031
1.031
933
739
955
48
37
0
6.757 Borrowings through the issuance of securities (note 15) 41 Financial derivatives (note 16)
20. 898 Tot al liabilit ies 1.031 Paid-in equity capital (note 19,20) 881 Accrued equity capital/retained earnings (note 20) 34 Result from ordinary operations after tax 1. 946 Tot al equit y c apit al ex c lus iv e minorit y int eres t
2. 012
1. 807
1. 986
Non-controlling interest
2
2
2
1. 946 Tot al equit y c apit al
2. 014
1. 809
1. 988
25. 789
24. 737
25. 985
22. 844 Tot al liabilit ies and equit y c apit al Conditional liabilities off balance sheet (note 11)
6
CHANGE IN EQUITY CAPITAL Group 31. 03. 14 E CC P remium
E quit y c apit al as at 01. 01. 14
Own Res ult f or
c apit al
f und
E CCs
187
845
-1
S av ings
v aluat ion
bank 's
v arianc e
f und
153
413
Donat ion
Char.
f und
f ound.
18
5
Div id. E qual
Min. int .
97
2
267
48
Extended profit or loss items 845
-1
13
13 0
Gift fund
0
0
0
48
0
-1
61 -1
Trans ac t ions wit h owners
0
Dividend paid E quit y c apit al 31. 03. 14
1 986 48
13 187
Tot al
res .
Result for the period S um t ot al ex t . prof it or los s
Ot her E qu. c ap.
- 32 187
845
Paid-in/accrued equity capital/retained earnings
- 1
166
413
17
5
267
113
1 031
- 32 2
2 014
983
2 014
1) The introduction of IAS19R (Mnok 19), historical figures considered not significant and prior periods are not restated. System performance plan closed in 2012.
Parent bank 31. 03. 14
E quit y c apit al as at 01. 01. 13
E CC
P remium
Own
Res ult f or
S av ings
c apit al
f und
E CCs
v aluat ion
bank 's
v arianc e
f und
187
845
-1
162
414
Donat ion
Char.
f und
f ound.
Div id. E qual 273
31
1 934
35
35
13
S um t ot al ex t . prof it or los s
0
0
0
13
Tot al
E qu. c ap.
res . 23
Result for the period Extended profit or loss items
Ot her
13 0
Gift fund
0
0
0
35
-1
48 -1
Trans ac t ions wit h owners
0
Dividend paid
- 34
E quit y c apit al 31. 03. 13
187
845
Paid-in/accrued equity capital/retained earnings
- 1
175
414
22
0
239
1 031
- 34 66
1 947
916
1 947
Group 31. 03. 13
E quit y c apit al as at 01. 01. 14
935
E CC
P remium
Own
Res ult f or
c apit al
f und
E CCs
v aluat ion
bank 's
v arianc e
f und
97
-1
137
382
17
IAS19R* )
S av ings
Donat ion
Char.
f und
f ound.
5
170
E qual
Ot her
5
66
2
14
37
-6 935
97
-1
-6
-6 0
Gift fund
0
0
0
37
0
-2
31 -2 0
Transactions with owners -49
Dividend paid Equity capital 31.03.14
1.810 19
37
Extended profit or loss items
Tot al
E qu. c ap.
res .
result for the period
Sum total ext. profit or loss
Div id.
935
97
Paid-in/accrued equity capital/retained earnings
-1
131
387
15
5
184
54
1.031
-49 2
1. 809
778
1.809
Parent bank 31. 03. 13
E quit y c apit al as at 01. 01. 13
E CC
P remium
Own
Res ult f or
c apit al
f und
E CCs
v aluat ion
bank 's
v arianc e
f und
935
97
-1
116
382
IAS19R* )
S av ings
Donat ion
Char.
f und
f ound.
17
5
Div id.
Tot al
24
1 745
E qual res .
5
170 14
19 25
result for the period -6
Extended profit or loss items Sum total ext. profit or loss
Div idend
0
0
0
-6
0
0
0
0
25
Gift fund
0 -2
Dividend paid Paid-in/accrued equity capital/retained earnings
7
1 783 0
Transactions with owners
Equity capital 31.03.13
25 -6
935
97
-1 1 031
110
385
- 24 17
5
160
- 26 49
1 757
726
1 757
CASH FLOW STATEMENT Parent bank
Group
31. 12. 13 31. 03. 13 31. 03. 14 229
34
12
3
29
6
- 53
-9
217
34
26
12
- 40
- 20
-1 119
- 575
1 739
236
0
0
- 183
-2
640
- 315
-9
-2
15
10
-4 609
-1 221
4 530
1 286
- 73
73
- 24
0
2 857
584
-3 406
- 662
300
0
47 Result of ordinary operations 2 + Ordinary depreciation/amortisation
31. 03. 14 31. 03. 13 31. 12. 13 66
51
266 21
4
5
11
6
32
- 17
- 14
- 73
47 = Provided from the years operations
64
48
246
- 2 Change miscellaneous debt: + increase/-decrease
-2
40
47
11 + Writedowns and gain/loss on fixed assets - 13 - Tax expense
- 39 Change miscellaneous claims: - increase/+ decrease - 573 Change loans to and balances with customers:- incr./+ decr. 102 Change deposits from and liabilities to customers:+ incr/-decr. 0 Change liabilities to credit institutions : + increase - 647 Change liabilities to credit institutions : + Decrease -1 112 A Net liquidity change from operating activities - 5 - Invested in tangible fixed assets 0 + Sale of tangible fixed assets - 703 - Investment in long-term securities 1 220 + Sale in long-term securities 512 B Liquidity change from investing activities 0 - Dividend paid on ECCs 659 + Issue debt securities - 214 - Redemption debt securities 0 Change subordinated loan capital/primary capital + incr.- decr 445 C Liquidity change from financing activities
- 39
13
- 40
- 49
- 254
- 866
111
242
1 778
0
0
0
- 647
-2
- 183
- 562
87
982
-5
-2
-9
0
10
15
- 703
-1 221
-4 609
920
1 286
4 530
212
73
- 73
0
0
- 24
562
584
3 357
- 214
- 726
-4 206
0
0
300
- 273
- 78
348
- 142
- 573
294
- 320
- 155 A+B+C Sum total change liquid assets
-2
18
336
1 077
1 077
1 371 + Liquid assets at the start of the period
706
370
370
1 371
757
1 216 = Liquid assets at the close of the period
704
388
706
NOTE 1. ACCOUNTING PRINCIPLES Both the consolidated financial statements and the Parent Bank’s separate financial statements have been prepared in compliance with IFRS, while the accounting policies applied in individual areas are described in the annual financial statements for 2013. The interim report for the second quarter is in compliance with IAS 34 and has not been audited.
8
NOTE 2. SEGMENT The Group has defined its geographical segment as a main area of Norway – Helgeland. The Group's exposure to credit risk is mainly concentrated on this area. The Group only has smaller exposure to credit risk in areas other than its geographically defined main area. Helgeland is the home region of the Parent Bank who is the Group's operating company. The group has split the bank into two segments, corporate and retail banking.
Parent bank
Group
31. 03. 14
31. 03. 14
Ret ail
Corp.
Not div ided
Tot al
Segment inf ormat ion
Ret ail
Corp. Not div ided
Tot al
47
47
-3
91 Net interest and credit commission income
75
49
- 12
112
6
3
10
19 Net commission income
6
3
10
19
0
0
8
9 Other operating income
0
0
7
7
20
7
33
22
8
32
62
2
8
1
31
35
- 19
9 435
7 109
0
-8
- 37
0
0
0
- 68
0
0
6 413
9 427
7 072
6 345
7 973
5 377
0
0
0
9 494
7 973
5 377
9 494
60 Operating costs 11 Losses on loans guaranteed 47 Res ult bef ore t ax 16 544 Loans to and claims on customers - 45 Individual write-downs
2
8
1
11
57
36
- 28
65
13 602
7 155
0
20 757
-8
- 37
0
- 45
0
0
- 68
- 68
0
0
5 145
5 145
13 594
7 118
5 077
25 789
7 969
5 131
0
13 100
- 68 Collective write-downs on loans 6 413 Other assets 22 844 Tot al as s t s per s egment 13 350 Deposits from customers and liabilities 9 494 Other liabilities and equity 22 844 Tot al liabilit ies and equit y per s egment
0
0
12 689
12 689
7 969
5 131
12 689
25 789
Parent bank
Group
31. 03. 13
31. 03. 13
Ret ail
9
Corp.
Not div ided
Tot al
Segment inf ormat ion
40
37
0
77 Net interest and credit commission income
7
3
7
0
0
4
19
6
33
-1
7
0
29
27
- 22
8 189
7 219
0
-5
- 20
0
0
0
- 66
0
0
6 324
8 184
7 199
6 258
7 498
4 248
0
0
0
9 895
7 498
4 248
9 895
Ret ail
Corp. Not div ided
Tot al
58
38
-1
95
17 Net commission income
7
3
7
17
4 Other operating income
0
0
4
4
22
6
31
59
58 Operating costs 6 Losses on loans guaranteed 34 Res ult bef ore t ax 15 408 Loans to and claims on customers - 25 Individual write-downs - 66 Collective write-downs on loans 6 324 Other assets 21 641 Tot al as s t s per s egment 11 746 Deposits from customers and liabilities 9 895 Other liabilities and equity 21 641 Tot al liabilit ies and equit y per s egment
-1
7
0
6
44
28
- 21
51
12 823
7 273
0
20 096
-5
- 20
0
- 25
0
- 66
0
- 66
0
0
4 732
4 732
12 818
7 187
4 732
24 737
7 498
3 954
0
11 452
0
0
13 285
13 285
7 498
3 954
13 285
24 737
NOTE 3. SPECIFICATION OF NET CHANGE IN VALUE OF FINANCIAL INSTRUMENTS Parent bank
Group
31. 12. 13 31. 03. 13 31. 03. 14
31. 03. 14 31. 03. 13 31. 12. 13
2
0 Value change in interest-bearing securities
0
2
5
0
1 Net gain/loss in interest-bearing securities
1
0
-2
4 Net gain/loss shares
4
-2
3
1
1 Income AC
2
3
5
0
1 Share dividend
1
0
6
-2
0
0 Value change in value on lending
0
0
-2
-1
0
-2 Value change on funding and derivatives
-2
0
-1
37
1
5 Tot al v alue c hange f inanc ial ins t rument s
6
3
14
5 -2 -2
-2
2 37
NOTE 4. SPECIFICATION OF TOTAL OPERATING COSTS Parent bank
Group
31. 12. 13 31. 03. 13 31. 03. 14
31. 03. 14 31. 03. 13 31. 12. 13
115
28
29 Wages, salaries and social costs
31
30
116
66
16
18 General administration costs
17
14
65
12
3
4
4
21
36
11
10 Other operating costs
3 Depreciation etc of fixed- and intangible assets
10
11
37
229
58
60 Tot al operat ing c os t s
62
59
239
NOTE 5. LOSSES ON LOANS GUARANTEES, ETC Parent bank
Group
31. 12. 13 31. 03. 13 31. 03. 14
31. 03. 14 31. 03. 13 31. 12. 13
18
4
5 +/- Period's change in individual write-downs
5
4
18
1
0
2 + Period's change in collective write-downs
2
0
5
9
3
3 + Period's conf. Losses against which ind. write-downs were made in prev. Years
3
3
9
1
0
2 + Period's confirmed losses against which no ind. write-downs,made in previous years
2
0
1
-1
-1
-1
-1
-1
28
6
11
6
32
-1 - Period's recoveries from previous periods' conf.losses 11 Tot al los s es on loans , guarant ees et c .
NOTE 6. PROFIT PER PRIMARY CERTIFICATE Parent bank
10
Group
31. 12. 13
31. 03. 13
175
25
75,1 %
75,1 %
7,0
1,0
7,0
1,0
31. 03. 14 34 Profit
31. 03. 14
31. 03. 13
31. 12. 13
48
37
193
75,1 %
75,1 %
75,1 %
1,4 Yield per equity capital certificate
1,9
1,5
7,8
1,4 Diluted result per ECC in Norwegian currency
1,9
1,5
7,8
75,1 % ECC percentage
NOTE 7. GEOGRAPHICAL EXPOSURE Geographical exposure within the loan portfolio was as follows:
Parent bank
Group
31. 03. 13
% 31. 03. 14
12 968
84 %
13 972
2 419
16 %
2 556
21
0%
16
15 408 100 %
%
31. 03. 14
84 % Helgeland 15 % Areas other than Helgeland
%
17 379
84 %
16 736
83 %
3 351
16 %
3 336
17 %
27
0%
24
0%
0 % International
16 544 100 % Tot al
% 31. 03. 13
20 757 100 %
20 096 100 %
NOTE 8. COMMITMENT AND LOSSES SPLIT BY SECTOR/INDUSTRY Group 31. 03. 14
31. 03. 13
Gros s loans % -s t ak e Los s prov . Def ault s Gros s loans % -s t ak e Los s prov . Def ault s Municipalities and municipal enterp.
1
0,0 %
0
0
1
0,0 %
0
0
Insurance and finance
12
0,1 %
0
0
16
0,1 %
0
0
Agriculture and forestry
1 341
6,5 %
2
1
1 279
6,4 %
1
0
Fisheries and aquaculture
730
3,5 %
1
0
865
4,3 %
0
0
Mining and industry
589
2,8 %
5
1
616
3,1 %
4
4
Building and construction
877
4,2 %
16
3
902
4,5 %
6
1
Trade, hotel, restaurants.
360
1,7 %
5
1
395
2,0 %
0
0
Transport and services
651
3,1 %
-1
1
675
3,4 %
6
0
2 594
12,5 %
8
0
2 524
12,6 %
2
1
13 602
65,5 %
9
2
12 823
63,8 %
6
0
20 757 100, 0 %
45
9
20 096 100, 0 %
25
6
Property, property development Retail market Tot al Change collective write-downs Tot al Of which gross loans Helgeland Boligkreditt As
4 278
2
0
11
6
20,6 %
Parent bank 31. 03. 14
31. 03. 13
Gros s loans % -s t ak e Los s prov . Def ault s Gros s loans % -s t ak e Los s prov . Def ault s Municipalities and municipal enterp.
1
0,0 %
0
0
1
0,0 %
0
0
Insurance and finance
12
0,1 %
0
0
16
0,1 %
0
0
Agriculture and forestry
1 329
8,0 %
2
1
1 264
8,2 %
1
0
Fisheries and aquaculture
727
4,4 %
1
0
862
5,6 %
0
0
Mining and industry
585
3,5 %
5
1
614
4,0 %
4
4
Building and construction
844
5,1 %
16
3
877
5,7 %
6
1
Trade, hotel, restaurants.
352
2,1 %
5
1
382
2,5 %
0
0
Transport and services
609
3,7 %
-1
1
624
4,0 %
6
0
Property, property development
2 650
16,0 %
8
0
2 579
16,7 %
2
1
Retail market
9 435
57,0 %
9
2
8 189
53,1 %
6
0
16 544 100, 0 %
45
9
15 408 100, 0 %
25
6
Tot al Change collective write-downs Tot al
11
2
0
11
6
NOTE 9. BAD AND DOUBTFUL LOANS (incl. guarantees) Parent bank
Group
31. 12. 13 31. 03. 13 152
123
32
13
120
110
17
22
8
12
9
10
129
120
0,8 %
0,7 %
31. 03. 14 154 Loans, guarantees etc. in default
31. 03. 14
31. 03. 13 31. 12. 13
154
123
41
13
32
113
110
120
9 Other bad and doubtful loans and guars., not in default
9
22
17
4 Loss provisions for other bad and doubtful loans, guarantees etc., not in default
4
12
-8
5 Tot al net bad and doubt f ul c ommit ment s , not in def ault
5
10
9
41 Loss provisions for loans, guarantees etc. in default 113 Tot al net loans , guarant ees et c . in def ault
118 Tot al bad and doubt f ul loans 0,7 % In % of total loans
152
118
120
129
0,6 %
0,6 %
0,6 %
NOTE 10. INDIVIDUAL AND COLLECTIVE WRITE DOWNS OF LOANS AND GUARANTEES Parent bank
Group
31. 12. 13 31. 03. 13 31. 03. 14
31. 03. 14 31. 03. 13 31. 12. 13
21
20
40 Individual write-downs to cover losses on loans and guarantees as at 01.01
40
20
21
-3
0
1 Period’s conf. losses, against which indi. Write-down was previously made
1
0
-3
1
0
3 Period’s increased individual write-downs, against which write-down was previously made
3
0
1
22
6
2 New individual write-downs during the period
2
6
22
-1 Reversal of individual write-downs during the period
-1
-1
-1
-1
-1
40
25
45 = Tot al indiv idual writ e-downs on loans
45
25
40
40
25
45
45
25
40
0
0
0
0
0
70
66
66
2
0
5
72
66
71
*Of which individual write-downs on loans accounted for
0 * Of which ind. Write-downs on guars. Accounted for Collec t iv e writ e-downs :
60
66
6
0
66
66
66 Collective write-downs to cover losses on loans at 01.01 2 + /- Period’s change in collective write-downs 68 Tot al c ollec t iv e writ e-downs
NOTE 11. CONTINGENT OFF BALANCE SHEET COMMITMENTS Parent bank
12
Group
31. 12. 13
31. 03. 13
1 623
1 370
488
492
0
0
2 111
1 862
31. 03. 14 1 557 Unutilized drawing rights 484 Guarantee obligations 0 Write-downs on gurantee 2 041 Net guarant ee and draw right s
31. 03. 14
31. 03. 13
31. 12. 13
1 874
1 672
1 959
484
492
488
0
0
0
2 358
2 164
2 447
NOTE 12. SUBSIDIARIES AND ASSOCIATED COMPANIES Subsidiaries with a stake greater than 50 % are consolidated and substantial interests are included under the equity method. Preliminary quarterly data from subsidiaries have applied in the consolidated financial statements.
Subsidiaries
Parent bank Share c apit al Number of s hares Equit y s t ak e
Mark et v alue 31. 03. 14 31. 03. 13
ANS Bankbygg Mo
49,0
5 591
97 %
45
45
190,0
190 000
100 %
290
290
AS Sparebankbygg
0,1
100
100 %
0,1
0,1
Helgeland Spb.eiend.selskap AS
0,1
100
100 %
0,4
0,4
Helgeland Utviklingsselskap AS
0,5
500
100 %
10
11
346
347
Helgeland Boligkreditt AS
Tot al inv es t ment in AC
Investment in associated companies
Group Loc at ion
Sec t or
Equit y s t ak e
Mark et v alue 31. 03. 14 31. 03. 13
Helgeland Invest AS*
Sandnessjøen
Investment
48 %
152
152
Eiendomsmegler Helgeland AS
Mo i Rana
Estate Agent
34 %
1
1
Storgt. 73 AS
Mosjøen
Real Estate
43 %
2
2
155
155
Tot al inv es t ment in AC Investment in associated companies
Parent bank Loc at ion
Sec t or
Equit y s t ak e
Mark et v alue 31. 03. 14 31. 03. 13
Helgeland Invest AS*
Sandnessjøen
Investment
48 %
160
159
Eiendomsmegler Helgeland AS
Mo i Rana
Estate Agent
34 %
4
4
Storgt. 73 AS
Mosjøen
Real Estate
43 %
Tot al inv es t ment in AC
0,1
0,1
164
163
NOTE 13. OPERATING FUNDS Parent Bank
Group
31. 12. 13
31. 03. 13
31. 03. 14
31. 03. 13
31. 12. 13
71
76
31. 03. 14 68 Operating funds*)
173
182
176
71
76
68 Tot al operat ing f unds
173
182
176
* Repossessed properties are included in both assets in the parent bank and the bank's wholly owned subsidary.
13
NOTE 14. DISCLOSURES OF RELATED PARTIES The information is given in line with IAS 24 for”Information regarding close parties” (Transactions toward leading employees and representatives comes forth in a note in the annual accounts). Helgeland Sparebank defines its subsidiaries and associated companies as close parties in relation to this accounting standard. The transactions between the parent bank, affiliated companies and associated companies are conducted in line with regular commercial terms and principles. Significant transactions with close parties per 31.03.14: Helgeland Boligkreditt AS (share of ownership 100 %) Helgeland Sparebank has received group contributions from the housing mortgage company of MNOK 29.8 in 2013. Transferred loans per 31.03.14 constitute totally MNOK 4,278. Covered bonds in the housing mortgage company constitute MNOK 3,618 where MNOK 400 (900) is owned by Helgeland Sparebank. Of the credit line of NOK 1.5bn, MNOK 514 is per 31.03.14 used. The bank has additionally entered into agreements with Helgeland Boligkreditt AS concerning credit lines of NOK 1.5bn, which mainly should be used in the settlement of purchased loans and repayment of covered bonds. The agreements are entered according to the principle of an arm’s lengths distance. The effects of the credit lines are eliminated in the consolidated accounts. Ans Bankbygg (share of ownership 97 %) The bank rents premises from ANS Bankbygg and has paid MNOK 2.0 in 2014. Frende Holding AS (share of ownership 8 %) Helgeland Sparebank has received commission for distribution of life insurance of MNOK 1.3 and commission sales general insurance of MNOK 3.8 in 2014
NOTE 15. REAL VALUE OF FINANCIAL INSTRUMENTS Parent bank
Group
31. 03. 13
31. 03. 14
31. 03. 14
31. 03. 13
Real
Balance
Real
Balance
Balance
Real
Balance
Real
value
sheet value
value
sheet value
sheet value
value
sheet value
value
ASSETS 85
85
103
672
672
1 113
1 081
1 081
1 094
14 236
14 236
15 337
185
185
221
4 696
4 696
4 333
20 955
20 955
22 201
103 Cash and receivables from central banks
103
103
85
85
1 113 Loans and receivables to credit institutions
601
601
303
303
1 094 Loans to customers at fair value 15 337 Loans to customers at amotrized cost 221 Derivates 4 333 Certificates,bonds and shares available for sale 22 201 Tot al
1 094
1 094
1 081
1 081
19 546
19 546
18 923
18 923
221
221
185
185
3 829
3 829
3 721
3 721
25 394
25 394
24 298
24 298
0
0
828
828
Liabilit ies 828
14
828
0
30
30
10
11 717
11 717
13 340
1 883
1 883
2 719
4 928
4 928
4 038
219
219
519
41
41
41
19 646
19 646
20 667
0 Liabilities to credit institutions amortized cost 10 Deposits at fair value
10
10
30
30
13 090
13 090
11 423
11 423
2 719 Debt securities at fair value
2 719
2 719
1 883
1 883
4 038 Debt securities hedging
7 154
7 154
8 263
8 263
519
519
219
219
41
41
41
41
23 533
23 533
22 687
22 687
13 340 Deposits from and liabilities at amortized cost
519 Fundbonds and subordinated loan capital 41 Derivates 20 667 Tot al
Parent bank
Group
31. 03. 14
31. 03. 14
Lev el 1 Lev el 2 Lev el 3
ASSETS
Lev el 1 Lev el 2 Lev el 3
Financial assets at fair value through profit 1 094
- Loans and receivables to customers at fair value
1 094
Financial instruments available for sale 4 124
14
195
221 4 124
1 329
- Sertificate, bonds and equities available for sale
3 620
- Financial derivatives 195
Tot al as s et s
14
195
221 3 620
1 329
195
LIABILITIES Financial obligations at fair value through profit 2 719
- Debt issue of securities 41
2719
41
2 719
- Financial derivatives 0 31. 03. 14 195 0
Tot al liabilit ies
41 2719
41
Changes in ins t rument s c las s if ied in lev el 3
0 31. 03. 14
Opening balance
195
Net purchase / sale of shares at fair value through profit
0
Reclassification 0 195
Revaluation of shares available for sale
0
Financ ial ins t rument s v alued on Lev el 3
195
Parent bank
Group
31. 03. 13
31. 03. 13
Lev el 1 Lev el 2 Lev el 3
ASSETS
Lev el 1 Lev el 2 Lev el 3
Financial assets at fair value through profit 1 081
- Loans and receivables to customers at fair value
1 081
Financial instruments available for sale 4 505
44
147
185 4 505
1 310
- Sertificate, bonds and equities available for sale
3 530
- Financial derivatives 147
Tot al as s et s
44
147
185 3 530
1 310
147
LIABILITIES Financial obligations at fair value through profit 1 883
- Debt issue of securities 41
1883
41
1 883
- Financial derivatives 0 31. 03. 13 142 5
Tot al liabilit ies Changes in ins t rument s c las s if ied in lev el 3 Opening balance Net purchase / sale of shares at fair value through profit
41 1883
41
0 31. 03. 13 142 5
Reclassification 0 147
15
Revaluation of shares available for sale Financ ial ins t rument s v alued on Lev el 3
0 147
NOTE 16. FINANCIAL DERIVATIVES Parent bank
Group
31. 03. 14 Nominal v alue Tot al
31. 03. 14 Mark et v alue
Nominal v alue
As s et s Commit ment s
1 046
41 Inerest rate swaps- fixed interest rate loans
Mark et v alue
Tot al
As s et s Commit ment s
1 046
41
1 046
41
Interest rate swaps- bank deposits with share Yield 1 046
41 Tot al f inanc ial deriv at iv es
2 500
221
2 500
221
Interest rate swaps – fixed interest rate with hedging 0 Tot al f inanc ial deriv at es wit h hedging
2 500
221
0
2 500
221
0
Parent bank
Group
31. 03. 13 Nominal v alue Tot al
31. 03. 13 Mark et v alue
Nominal v alue
As s et s Commit ment s 931
Tot al
41 Inerest rate swaps- fixed interest rate loans
Mark et v alue As s et s Commit ment s
991
41
Interest rate swaps- bank deposits with share Yield 931
0
41 Tot al f inanc ial deriv at iv es
991
1 700
185
0 Interest rate swaps – fixed interest rate with hedging
1 700
185
0 Tot al f inanc ial deriv at es wit h hedging
0
41
1 700
185
0
1 700
185
0
Parent bank and Group 31. 03. 2014 Gros s f inanc ial Financ ial as s et s t hat Net f inanc ial as s et s Derivaives carried as assets Derivaives carried as liabilities
as s et s 221 41
are rec ogniz ed net in t he balanc e s heet 0 221 0
41
Financ ial
Net
ins t rument s 41
180
-41
0
Parent bank and Group 31. 03. 2013 Gros s f inanc ial Financ ial as s et s t hat Net f inanc ial as s et s Derivaives carried as assets Derivaives carried as liabilities
as s et s 185 41
are rec ogniz ed net in t he balanc e s heet 0 185 0
41
Financ ial
Net
ins t rument s 41
144
-41
0
Relevant instruments for managing interest rate risk will be primarily interest rate swaps. Trading in derivatives can be made with various counterparties. To differentiate counterparty structure used a selection of the major banks / brokerages that account for the bulk of revenue in interest-related products in the market. If the bank has the same counterparty derivatives both on the asset side and the liability side, these can be offset
16
NOTE 17. GEOGRAPHICAL EXPOSURE DEPOSITS FROM AND LIABILITIES TO CUSTOMERS
Parent bank
Group
%
31. 03. 13
%
91,9 %
10 791
92,1 %
7,4 %
866
7,1 %
0,8 %
90
0,8 %
100 %
11 747
100 %
31. 03. 14
31. 03. 14
%
31. 03. 13
%
12 044
91,9 %
10 497
91,7 %
954 Areas other than Helgeland
950
7,3 %
866
7,6 %
106 International
106
0,8 %
90
0,8 %
13 100
100 %
11 453
100 %
12 290 Helgeland
13 350 Tot al
NOTE 18.DEPOSITS FROM CUSTOMERS SPLIT BY SECTOR/INDUSTRY Parent bank
Group
%
31. 03. 13
%
4,4 %
516
3,8 %
7,9 %
927
11,4 %
31. 03. 14
31. 03. 14
%
31. 03. 13
%
266
2,0 %
246
2,1 %
511 Financial institutions 1 528 Municipalities and municipal enterp.
1 528
11,7 %
927
8,1 %
2,7 %
323
2,5 %
331 Agriculture and forestry
331
2,5 %
323
2,8 %
2,2 %
258
2,7 %
361 Fisheries and aquaculture
361
2,8 %
258
2,3 %
1,5 %
171
1,3 %
169 Mining and industry
169
1,3 %
171
1,5 %
4,8 %
566
5,6 %
745 Building and construction
745
5,7 %
566
4,9 %
2,8 %
325
2,7 %
366 Trade, hotel, restaurants.
366
2,8 %
325
2,8 %
879
6,7 %
674
5,9 %
486
3,7 %
465
4,1 %
5,7 %
674
6,6 %
879 Transport and services
4,2 %
489
3,6 %
486 Property, property development
63,8 %
7 498
59,7 %
100 %
11 747
100 %
7 974 Retail market 13 350 Tot al
7 969
60,8 %
7 498
65,5 %
13 100
100 %
11 453
100 %
NOTE 19. EQUITY CERTIFICATE CAPITAL HELG Parent bank Per 31. 03. 14
Numbers
Sparebankstiftelsen Helgeland
8 599 598
USB AG, London Branc A/C
1 000 000
% s hare
Numbers
% s hare
262 884
1,4 %
5,3 % Sniptind Holding AS
201 801
1,1 %
46,0 % Verdipapirfondet Eika utbytte
MP Pensjon PK
902 203
4,8 % Holberg Norge Verdipapirfond
168 600
0,9 %
Bergen kommunale pensjonskas
482 000
2,6 % Johs. Haugerudsvei AS
145 992
0,8 %
AS Atlantis Vest
448 481
2,4 % Mellem Nes Invest
118 200
0,6 %
Sparebankstiftelsen DNB
442 724
2,4 % Ruth S Alsing
111 926
0,6 %
Pareto AS
420 000
2,2 % Melum Mølle AS
110 240
0,6 %
Citibank, N.A.
391 138
2,1 % Steffen Nervik
110 000
0,6 %
VPF Nordea Norge
377 750
2,0 % Utbyttekapital AS
107 163
0,6 %
Helgelandskraft As
340 494
1,8 % Andvord AS
102 203
0,5 %
14 843 397
79, 4 %
Tot al 10 bigges t owners
13 404 388
71, 7 % Tot al 20 bigges t owners
The bank has issued a total of 18 700 000 primary certificates value of NOK 10,-.
17
NOTE 20. CAPITAL ADEQUACY Parent bank
Group
31. 12. 13
31. 03. 13
187
935
31. 03. 14
31. 03. 14
31. 03. 13
31. 12. 13
187 ECC-capital
187
935
187
845 Premium Fund
845
97
845
-1
-1
-1
1 031
1 031
1 031
845
97
-1
-1
1 031
1 031
415
387
415 Savings Bank’s fund
415
387
415
162
110
175 Reserve for vauluation variances
167
104
154
23
20
22
20
23
269
184
269
184
269
34
0
0 Cash dividend
0
0
34
0 Other equity capital
- 1 Own ECCs 1 031 Tot al paid-in c apit al
22 Donations Fund 269 Dividend equalisation reserve
0
0
60
44
62
903
701
881 Tot al ac c rued equit y c apit al
933
739
957
- 162
- 110
- 175 Reserve for vauluation variances
- 167
- 104
- 154
- 53
- 66
- 53 Deferred tax assets
- 53
- 69
- 53
- 69
- 42
- 71 Shares in financial institutions
- 71
- 42
- 69
- 39
-5
- 5 Cash dividend /gifts employee
-5
-5
- 39
1 611
1 509
1 668
1 550
1 673
218
219
219
219
218
1 887
1 769
1 891
300
0
300
65
45
61
- 70
- 42
- 69
0
0
0
295
3
292
1 829
1 728
300
0
65
48
- 69
- 42
0
0
296
6
2 125
1 734
12 715
12 468
12,67 %
12,10 %
14,38 % 16,71 %
1 608 Tot al c ore t ier one 219 Hybrid capital 1 827 Tot al c ore c apit al 300 Subordinatet dept 69 Weight assets calculation basis *) - 70 Shares in financial institutions 0 Additional 299 Tot al net s upplement ary c apit al 2 126 Tot al net equit y and relat ed c apit al
2 182
1 772
2 183
13 709
13 568
13 640
12,65 % Core tier one Capital ratio
12,17 %
11,42 %
12,26 %
13,86 %
14,37 % Core capital ratio
13,76 %
13,04 %
13,86 %
13,91 %
16,73 % Capital ratio
15,92 %
13,06 %
16,00 %
12 711 Weight assets calculation basis *)
Included 70% of result 12,84 % Core tier one Capital ratio
12,41 %
14,56 % Core capital ratio
14,01 %
16,91 % Capital ratio
16,16 %
The note shows the calculation basis and capital adequacy according to Basel II (standard method credit risk).
18
31. 12. 13
31. 03. 13
0
0
31. 03. 14 0 States and central banks
31. 03. 13
31. 12. 13
0
0
0
61
65
71
65
61
1 428
957
1 143 Institutions
793
577
851
2 729
3 689
2 820 Enterprises
2 822
3 689
2 731
2 172
2 067
2 227 Mass market loans
2 264
1 999
2 238
5 062
4 384
5 165 Loans secured by real property
6 664
6 117
6 729
161
137
132 Loans overdue
132
137
161
198
205
168 Covered bonds
118
205
116
0
0
511
494
12 321
11 999
696
697
- 303
- 228
12 715
12 468
71 Local and regional authorities (including municipalities)
31. 03. 14
0 Units in securities funds 541 Other loans and commitments 12 268 Capit al requirement c redit ris k 756 Capital requirement operational risk 1) - 313 Deducted from capital requirement 12 711 Tot al c apit al requirement
0
0
0
322
253
307
13 187
13 043
13 195
834
748
748
- 313
- 224
- 302
13 709
13 568
13 640
PROFIT AND LOSS ACCOUNT ITEMS AS A PERCENTAGE OF AVERAGE ASSETS Parent bank
Group
31. 12. 13 31. 12. 13
19
31. 03. 14
31. 03. 14 31. 12. 13 31. 12. 13
4,07
3,99
4,03 Interest receivable and similar income
4,22
4,11
4,25
2,47
2,55
2,44 Interest payable and similar costs
2,47
2,56
2,51
1, 59
1, 43
1, 75
1, 55
1, 74
0,39
0,35
0,34
0,31
0,35
0,04
0,04
0, 34
0, 32
0,17
0,02
0,07 1,04
1, 60 Net int eres t - and c redit c ommis s ion inc ome 0,38 Commissions receivable and income from banking services 0,04 Commissions payable and costs relating to banking services
0,04
0,03
0,04
0, 30
0, 28
0, 31
0,09 Gains/losses on financial assets available for sale
0,09
0,05
0,06
0,06
0,05 Other operating income
0,02
0,02
0,03
1,08
1,05 Operating costs
0,96
0,96
0,95
0,12
0,11
0,19 Losses on loans, guarantees etc. and fixed assets
0,17
0,10
0,13
1, 02
0, 63
1, 03
0, 83
1, 05
0,24
0,17
0,28
0,23
0,29
0, 78
0, 47
0, 75
0, 60
0, 77
0, 34 Net c ommis s ion inc ome
0, 83 Res ult bef ore t ax 0,23 Tax payable on ordinary result 0, 60 Res ult f rom ordinary operat ions af t er t ax
PROFIT & LOSS ACCOUNT AND BALANCE SHEET DEVELOPMENT Profit and loss account items as a percentage of average assets Parent Parent bank bank
Group Group
Q2/ Q1/12 13
Q3/ Q2/12 13
Q4/ Q3/12 13
Q2/ Q4/13 13
4,23 214
4,11 227
4,00 234
3,99 236
2,81 137
2,64 138
2,54 140
2,55 139
1, 42 77
1, 47 89
1, 46 94
1, 43 97
0,39 19
0,41 21
0,39 24
0,35 23
0,042
0,043
0,062
0,043
0, 35 17
0, 38 18
0, 33 22
0, 32 20
0,041
0,04 36
-0,07 -1
0,021
0,003
0,004
0,043
0,005
1,05 58
0,96 56
1,02 58
1,02 57
0,186
0,137
0,093
0,11 12
0, 58 34
0, 79 84
0, 65 57
0, 63 54
Q2/ Q1/13 14
Q2/ Q1/13 14
Q1/ Q4/13 13
Q4/ Q3/12 13
Q3/ Q2/12 13
Q2/ Q1/12 13
4,10 230 Interest Interest receivable receivableand andsimilar similarincome income
4,24 272
4,11 278
4,12 275
4,18 267
4,35 252
2,49 139 Interest Interest payable payableand andsimilar similarcosts costs
2,51 159
2,56 160
2,58 158
2,65 158
2,87 157
1,113 73
1,118 55
1,117 54
1,109 53
1, 48 95
0,38 22 Commissions Commissions receivable receivableand andincome incomefrom from banking bankingservices services
0,33 22
0,31 23
0,34 24
0,37 21
0,35 19
0,052 Commissions Commissions payable payableand andcosts costs relating relatingto tobanking bankingservices services
0,052
0,033
0,052
0,033
0,032
0, 29 19
0, 28 20
0, 29 22
0, 33 18
0, 32 17
0,655 Gains/losses Gains/losses on onfinancial financial assets assets available availablefor forsale sale
0,056
0,056
-0,082
0,053
-0,103
0,023 Other Otheroperating operatingincome income
0,031
0,023
0,051
0,022
0,021
0,96 60 Operating Operatingcosts costs
0,94 62
0,96 62
0,97 59
0,93 59
1,01 59
1, 61 91 Net Net int interes erestt-- and and ccredit redit ccommis ommisssion ion inc income ome
0, 33 19 Net Net ccommis ommisssion ion inc income ome
0,13 11 Losses Losses on onloans, loans, guarantees guarantees etc. etc. Result ult bef before ore ttax ax 1, 52 47 Res
0,11 11
0,10 12
0,087
0,127
0,166
1, 05 66
0, 83 73
0, 75 76
0, 88 66
0, 55 51
Tax payable payableon onordinary ordinary result result 0,29 13 Tax Res ult ffrom ordinary operat Res ult rom ordinary operations ions af aftter er ttax ax 1, 23 34
0,32 18
0,23 17
0,24 22
0,23 20
0,14 14
0, 73 48
0, 60 56
0, 50 54
0, 65 46
0, 41 37
Q1/ 14
Q4/ 13
Q3/ 13
Q2/ 13
Q1/ 13 4,11
0,189
0,23 16
0,19 16
0,17 13
0, 41 25
0, 57 68
0, 46 41
0, 47 41
Q1/ 13
Q2/ 13
Q3/ 13
Q4/ 13
Q1/ 14
3,99
4,10
4,13
4,05
4,03
Interest receivable and similar income
4,22
4,22
4,27
4,24
2,55
2,49
2,47
2,38
2,44
Interest payable and similar costs
2,47
2,43
2,45
2,51
2,56
1, 45
1, 61
1, 66
1, 66
1, 60
1, 75
1, 79
1, 82
1, 73
1, 55
0,35
0,38
0,42
0,39
0,38
Commissions receivable and income from banking services
0,34
0,35
0,37
0,33
0,31
0,04
0,05
0,04
0,05
0,04
Commissions payable and costs relating to banking services
0,04
0,05
0,03
0,05
0,03
0, 32
0, 33
0, 39
0, 34
0, 34
0, 30
0, 30
0, 34
0, 29
0, 28
0,02
0,65
-0,02
0,02
0,09
Gains/losses on financial assets available for sale
0,09
0,09
0,03
0,05
0,05
0,06
0,08
0,06
0,07
0,05
Other operating income
0,02
0,05
0,02
0,03
0,02
1,08
1,04
1,05
0,99
1,05
Operating costs
0,96
0,94
0,92
0,94
0,96
0,11
0,13
0,05
0,21
0,19
Losses on loans, guarantees etc.
0,17
0,18
0,11
0,11
0,10
0, 65
1, 52
1, 01
0, 93
0, 83
1, 03
1, 11
1, 18
1, 05
0, 84
0,17
0,29
0,28
0,22
0,23
0, 49
1, 23
0, 72
0, 70
0, 60
Parent bank
Group
Parent bank
Net int eres t - and c redit c ommis s ion inc ome
Net c ommis s ion inc ome
Res ult bef ore t ax Tax payable on ordinary result Res ult f rom ordinary operat ions af t er t ax
0,28
0,26
0,34
0,32
0,23
0, 75
0, 85
0, 84
0, 73
0, 61
Group
Balanc e s heet (Amount s in NOK million)
31. 03. 13 30. 06. 13 30. 09. 13 31. 12. 13 31. 03. 14
31. 03. 14 31. 12. 13 30. 09. 13 30. 06. 13 31. 03. 13 ASSETS
85
107
87
98
103
672
1 550
1 328
1 273
1 113
Cash and claims on central banks
103
99
87
107
85
Loans to and claims on credit institutions
601
607
693
804
303
15 317
15 516
16 007
15 863
16 431
185
213
209
213
221
20 640
20 597
20 699
20 395
20 004
221
213
209
213
4 696
4 550
4 732
4 851
4 333
185
3 829
4 032
3 912
3 730
3 721
164
164
164
164
163
Investments in associated companies
347
347
347
346
346
Investments in subsidiaries
155
155
155
155
157
0
0
0
0
66
66
66
53
53
Deferred tax benefit
0
53
53
69
69
69
76
73
73
71
68
33
12
12
53
13
Fixed assets
173
176
179
178
182
Other assets
14
53
20
19
21 641
22 598
23 025
22 985
22 844
31
25 789
25 985
26 023
25 670
24 737
828
647
644
647
0
11 747
12 461
12 809
13 248
13 350
6 811
6 934
6 950
6 361
6 757
41
41
43
41
41
238
169
191
235
231
Other liabilities Fund bonds
Loans to and claims on customers Financial derivatives Certificates, bonds and shares available for sale
Tot al as s et s LIABILITIES AND EQUITY CAPITAL
20
219
518
518
519
519
19 884
20 770
21 155
21 051
20 898
1 031
1 031
1 031
1 031
1 031
701
704
705
903
881
25
93
134
0
34
1 757
1 828
1 870
1 934
1 946
21 641
22 598
23 025
22 985
22 844
Liabilities to credit institutions Deposits from customers and liabilities to customers Borrowings through the issuance of securities Financial derivatives
0
647
644
647
828
13 100
12 989
12 553
12 194
11 453
9 873
9 553
10 140
10 225
10 146
41
41
43
41
41
242
248
214
186
241
519
519
518
518
219
23 775
23 997
24 112
23 811
22 928
1 031
1 031
1 031
1 031
1 031
933
955
741
743
739
Profit after taxes
48
0
137
83
37
Minority interest
2
2
2
2
2
2 014
1 988
1 911
1 859
1 809
25 789
25 985
26 023
25 670
24 737
Tot al liabilit ies Paid-in equity capital Accrued equity capital/retained earnings
Tot al equit y c apit al Tot al liabilit ies and equit y c apit al
OTHER KEY FIGURES Parent bank
Group
31. 12. 13 31. 03. 13 31. 03. 14
31. 03. 14 31. 03. 13 31. 12. 13 B A LA NCE S HE E T Dev elopment in t he las t 3 mont hs
0,6
-0,7 Total assets
-0,8
0,6
3,9
3,6 Gross lending
0,2
1,3
2,1
0,8 Deposit
0,9
2,2
Dev elopment in t he las t 3 mont hs 6,8
5,1
5,2 Total assets
4,3
7,5
5,7
7,7
6,7
7,4 Gross lending
3,3
9,0
4,4
13,6 Deposit
14,4
8,0
15,9
63,1
57,0
62,7
15,1
8,6
83,0
76,2
80,7 Deposit coverage as a percentage of gross loans 57,0 Lending to retail customers
55,8
53,3
65,5
63,8
65,6
22.407
21.776
23.120 Average assets
26.140
24.844
25.290
15.970
15.408
16.544 Gross loans
20.757
20.096
20.708
-45
-25
-40
-72
-66
-71
0
0
0
-40
-25
-45 Individual write-downs
-67
-66
-68 Period's change in collective write downs
0
0
0 Individual write-downs on guarantees
12,7
12,1
12,7 Capital adequacy ratio as percentage
12,2
11,4
12,3
14,4
13,9
14,4 Core capital ratio as percentage
13,8
13,0
13,9
16,7
13,9
16,7 Core tier one Capital ratio
15,9
13,1
16,0
8,4
8,2
8,5 Equity capital ratio
7,8
7,3
7,7
9,5
5,8
7,1 Rate of return on equity capital
9,9
8,4
10,4
0,8
0,5
0,6 Return on assets
0,7
0,6
0,8
1,9
1,5
7,8
S OLIDITY
K E Y FIGURE S P CC 7,0
1,0
1,4 Yield per primary certificate 1,4 Diluted result per ECC, in Norwegian currency
7,0
1,0
1,9
1,5
7,8
75,1
75,1
75,1 ECCs split as of 31.12
75,1
75,1
75,1
76,3
70,6
78,2 Equity capital per ECC 1)
80,9
72,7
78,5
47,2
40,5
49,1 PCC price quoted on the stock exchange
49,1
40,5
47,2
6,7
9,9
8,6 P/E (price as at 30.09 divided by profit per ECC)
6,4
6,7
6,1
0,6
0,6
0,6 P/B (price as ar 30.09. divided by book value of equity capital
45,8
57,9
1,0
1,0
177,0
177,0
26,3
20,3
1,0
0,8
0,8
50,8 Costs as a percentage of income 1,1 Cost in percent of average total assets
0,6
0,6
0,6
44,5
50,9
44,5
1,0
1,0
0,9
177,0
177,0
177,0
29,2
20,3
26,3
0,9 Gross defaults over 90 days
0,7
0,6
0,7
0,7
0,7 Net defaults over 90 days
0,5
0,5
0,6
0,7
0,6
0,7 Total loan loss provision
0,6
0,5
0,5
0,2
0,2
0,1 Losses on lending
0,1
0,1
0,2
177,0 Number of man-years LOS S E S ON LOA NS A ND GROS S DE FA ULTS 29,2 Specified loan provision in % of gross default on loan As a percentage of gross lending:
1) equity certificarte holders their share of total equity in the balance sheet. Calculation have been changed as of 12/31/13, comparative figures have been restated. Earlier calculation; equity certificate capital + share premium account + equalization fund, divided by numbers of Ecs.
21
Information concerning Helgeland Sparebank Head Office Postal address Office address Telephone Website Organisation number
Postboks 68, 8601 Mo i Rana Jernbanegata 15, 8622 Mo i Rana + 47 75 11 90 00 www.hsb.no 937904029
Board of Directors of Helgeland Sparebank Thore Michalsen, Chair Ove Brattbakk, Deputy Chair Gislaug Øygarden Monica Skjellstad Stein Andre Herigstad-Olsen May Heimdal
Investor Relations Inger Lise Strøm, Chief Financial Officer tel: + 47 75 11 91 11 Tore Stamnes, Head of Treasury tel: + 47 75 11 90 91
Other sources of information Annual reports The annual report for Helgeland Sparebank is available at www.hsb.no
Quarterly publications Quarterly reports and presentations are available at www.hsb.no
22